JAKARTA - AirAsia Group Bhd’s long-haul arm AirAsia X Bhd is liquidating its operations in Indonesia as it continues to struggle with the impact of the coronavirus (COVID-19) pandemic.
In addition, AirAsia X Deputy Chair Lim Kian Onn said, the airline has also offloaded its 49% stake in Thai AirAsia X as part of its proposed restructuring plan to resolve almost US$15.3 billion in debt, which is still awaiting approval from shareholders and creditors.
According to Mr Lim, initial negotiations have been “tough” with creditors asking for better terms including free equity for forgiven debt—which he said would be impossible for the airline to fulfill.
“We have been talking to them for two months. All of them are understandably upset. We put our hands up and say we are guilty. We owe you money. I would be aggrieved if I were them,” he told The Star on Saturday (17/10).
All of AirAsia X’s aircraft have been grounded since March, and while initially the airline hoped to resume flights in October Mr Lim has conceded that it is “no longer possible”.
“Now we are planning for the first quarter [of 2021]. Who knows whether we can, so it’s a very dynamic process,” he said. (MS)